It will also get the Preferred Share Offer Price per share of preferred stock in an all-cash transaction representing approximately $500 million of enterprise value.
And because of the acquisition, Care.com CEO Tim Allen will be a part of IAC’s division for Emerging and Other Reporting.
Allen said the company was “excited” to begin this “new chapter” and that it would remain committed to delivering services to help families and caregivers.
Care.com is fresh off a bout of controversy after the Wall Street Journal reported that some caregivers were not given the required level of background checks needed. In some cases, WSJ said, unlicensed people or people with criminal records were given responsible over children and elderly individuals. In the wake of that report, the CEO resigned and the market for a sale began to open up.
Care.com boasts of tens of thousands of successful matches between families and caregivers who can assist them. The family care market in the U.S. is worth around $300 billion. Due to demographics in the U.S. like the increasing population of elderly people living longer now than they did in years past, companies that focus on that market have been successful in the country.
The market has also tended towards the volatile, with over 4 million caregivers and 40 million households that need either child or senior care or both.
By performing the acquisition, IAC has gained a way into that market. CEO Joey Levin said that the need for family care is a market like dating or home services that has been ripe for technological innovation in recent years.
IAC manages Vimeo, DotDash and others, and has majority ownership in Match Group, which oversees Tinder, OKCupid and other popular dating app services. It is headquartered in New York and has offices worldwide.